2. Ann has three days left before an exam. Each day she has a quasi-hyperbolic utility with δ = 1 and β = 0.5. Each day she can either work hard and get a delayed reward of 10, or have fun with an immediate reward of 7. She can work 1, 2, or 3 days and get 10, 20, or 30 in delayed rewards respectively.
Without commitments, Ann will
(A) work every day t = 1,2,3; (B) have fun every day t = 1,2,3; (C) have fun at t = 1,2 and work at t = 3; (D) none of the above.
(A) at t = 1,2; (B) only at t = 1; (C) only at t = 2; (D) never.